This copy is for your personal non-commercial use only. To order presentation-ready copies of Toronto Star content for distribution to colleagues, clients or customers, or inquire about permissions/licensing, please go to: www.TorontoStarReprints.com

Canada Post must adapt to survive, says CEO

Canada Post must make difficult changes to keep pace in the digital world, Deepak Chopra, the head of Crown agency, told a Commons committee Wednesday.

Postal workers demonstrate in front of Transport Minister Lisa Raitt's Milton office Wednesday. The workers' union is among groups invited to speak at a special Commons committee studying the proposed Canada Post changes.
(Frank Gunn / THE CANADIAN PRESS)

By The Canadian Press

Wed., Dec. 18, 2013

OTTAWA—Canada Post must make difficult changes to keep pace in the digital world, the head of Crown agency told a Commons committee Wednesday.

In defending the corporation’s proposed service cuts and price hikes, Canada Post CEO Deepak Chopra told the Commons transport committee the changes are necessary in order for the carrier to survive.

“If the mail is changing its shape and size, don’t we think the mailbox should change its shape and size, too?” Chopra asked.

“So what we’re trying to do is adapt (to) the changing needs of Canadians.”

It was the first time Chopra has spoken publicly since the announcement last Wednesday that Canada Post plans to phase out door-to-door mail delivery in urban centres over a five-year period — something the corporation’s union says it will fight to the last breath.

Article Continued Below

Instead, mail would be delivered to communal neighbourhood “superboxes.”

Under the proposal, the cost of stamps who also rise sharply to $1.

Chopra struck a positive tone during his nearly one-hour appearance at the committee, but said difficult choices had to be made.

“We believe Canada Post will remain a relevant, meaningful participant in the lives of Canadians,” he said.

“Over the years the mail has changed in shape and size, and so are we.”

That change, said Chopra, means concentrating more on delivering packages and less on putting paper letters in mail slots.

He told the committee that Canada Post profits began to drop off in 2007 as people and businesses turned to digital communication.

That decline picked up speed in 2010, he said, with the introduction of computer tablets.

Chopra also cited a recent report that warned, without significant changes, Canada Post could be losing $1 billion a year by 2020.

The post office union, however, questioned that assessment, and also asked why Canada Post hasn’t tried more aggressively to expand its revenue base.

“We accept the fact that things are changing,” said Denis Lemelin, president of the Canadian Union of Postal Workers.

“However, we cannot understand why Canada Post will not follow the example of post offices in the U.K., in France, in Italy, in Switzerland and in many other countries, which are currently either beginning a banking service or expanding their existing services.”

Lemelin vowed that CUPW would do everything in its power to reverse the proposed service cuts.

NDP committee member Hoang Mai questioned whether the postal service consulted widely enough before coming up with its restructuring plan, saying he’s heard from people who are outraged over the proposals.

“When you made the announcement, people really came out,” Mai told Chopra. “People find it terrible.”

Liberal MP David McGuinty warned that the elderly and disabled will face difficulties retrieving mail once door-to-door delivery ends.

But Chopra said the agency had consulted with Canadians for months, and has been mindful of seniors’ concerns in putting together its reform proposals.

The Toronto Star and thestar.com, each property of Toronto Star Newspapers Limited, One Yonge Street, 4th Floor, Toronto, ON, M5E 1E6. You can unsubscribe at any time. Please contact us or see our privacy policy for more information.

More from the Toronto Star & Partners

LOADING

Copyright owned or licensed by Toronto Star Newspapers Limited. All rights reserved. Republication or distribution of this content is expressly prohibited without the prior written consent of Toronto Star Newspapers Limited and/or its licensors. To order copies of Toronto Star articles, please go to: www.TorontoStarReprints.com